My son recently paid a $500 holding deposit for a car, for sale by a private person at $17,000. The deposit was requested by the seller when we asked for the car to be taken to and inspected by our mechanic. It was paid by bank transfer, with the label Holding Deposit and rego number of the car.
On inspection, our mechanic wrote a report detailing items that would need to be tended to prior to purchase. We decided not to proceed with the sale on the basis of the report which was, in goodwill, shared with the vendor.
The vendor is now refusing to refund the deposit. My understanding is that a deposit is by nature, fully refundable unless stipulated prior to payment. Vendor has suggested he may pay part back, less his “time & expenses” incurred in taking his car to our mechanic (incidentally close to his home...). I have stated that I don’t believe this to be legal either.
Could someone please advise what our next move should be? Grateful for any advice, thank you.
On inspection, our mechanic wrote a report detailing items that would need to be tended to prior to purchase. We decided not to proceed with the sale on the basis of the report which was, in goodwill, shared with the vendor.
The vendor is now refusing to refund the deposit. My understanding is that a deposit is by nature, fully refundable unless stipulated prior to payment. Vendor has suggested he may pay part back, less his “time & expenses” incurred in taking his car to our mechanic (incidentally close to his home...). I have stated that I don’t believe this to be legal either.
Could someone please advise what our next move should be? Grateful for any advice, thank you.